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NPF Microfinance Bank to raise fresh fund, pays N114.3m dividend

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Nigeria Police Force (NPF) Micro Finance Bank.

Nigeria Police Force (NPF) Microfinance Bank (MFB) Plc has announced plans to raise additional funds from the capital market to boost its working capital.
 
The Managing Director/Chief Executive Offer, NPF MFB, Akinwunmi Lawal, while addressing shareholders during the bank’s 25th yearly general meeting, held recently, said the bank has concluded plans to raise fresh fund this year.
   
He expressed optimism that the offer would be oversubscribed, considering the bank’s record of over 20 years of consistent dividend payment.
   
According to him, the bank would proceed to sell its shares to both existing and prospective shareholders after securing approval of the regulatory authorities, adding that the proceed would be deployed to beef up its working capital, information technology, branch improvement, among others.
   
He explained that the bank recommended a dividend of 332 million, which translates to five kobo per share, adding that N81.416 million would be transferred to various reserves as there is a need to conserve money for the future developmental projects.

He added that the bank’s total asset increased to N17. 597 billion from N15.952 billion recorded in the previous year, representing 10.31 per cent increase. 
   
“The loans and advances improved by 17.59 per cent to N10.593 billion in 2018 from N9.008 billion in 2017. The deposit liability moved from N9.126 billion to N10.465 billion showing a growth of 14.67percent, which indicated the continued growth of our customer’s trust and confidence in our mission. 
   
“Our borrowing from various intervention funds increased by 34.08 per cent to N2.078 billion from N1.550 billion and this is accountable for the increase in interest expenses by 34.7 per cent.”
 
The chairman of the bank, Azubuko Udah, said the year 2018 marked the end of the three years strategy, which commenced in 2016, adding that plans for the next three years, from 2019 to 2021, have been put in place to reposition the bank in the provision of microfinance services.
 
To propel this strategy, he said that the bank is considering it vital to recapitalise by raising more funds from existing shareholders and inviting new investors to have a stake, adding that the bank would also leverage technology through alternative banking channels to increase market share.
  
He added that the bank changed its banking software in the year under review to a new core banking software T24 under the National Association of Microfinance Banks Unified Integration Technology platform (NAMBUIT) of the Central Bank of Nigeria, CBN.


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